Rapid investments into AI infrastructure and energy systems, as well as current geopolitical tensions, are driving new demand for insurance as developers build large and highly complex data centers, according to Swiss Re Institute.
Total real global premium growth, including life insurance and non-life business lines, will drop from 3.9% in 2025 to 1.3% in 2026 and 1.6% in 2027, Swiss Re predicts in its report, "
According to its projections, real life insurance premiums will decline to 0.6% in 2026 due to competitive pricing, slowing economic momentum and higher claims severity. Global life insurance premiums will yield a less significant drop from 4% in 2025 to 2.3%, as the impact of supply shocks on life insurers is less direct than on non-life insurance companies.
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At the same time we see governments prioritizing national security and supply-chain resilience, investments in AI data center infrastructure and semiconductor manufacturing are offsetting supply shocks. AI data center investments are projected to reach $750 billion in 2026 and will contribute 0.2% to 0.3% of U.S. growth, according to Swiss Re estimates.
Swiss Re experts say that Global commercial and personal insurance prices will likely remain low in 2026 and 2027, though rates could be pressured as insurers compete for growth as non-life insurance real premium growth hits a cyclical bottom.
The life insurance industry will stay resilient, though affordability issues may put pressure on growth in the medium and long-term. The report forecasts that life premium growth will stabilize at around 2% from 2026 to 2027, and shifting demographic trends should create growth opportunities for life insurers. The research also suggests that profitability outlook remains positive due to higher reinvestment yields and investment income, plus the AI investment boom, driving the next phase of growth in life insurance.
"As the global economy and supply chains become more fragmented, demand is increasing for specialist solutions that support international trade, investment and business continuity. Meanwhile, the AI boom is driving unprecedented infrastructure investment. Some of the largest AI data centres now carry total asset values exceeding $20 billion before technology installation, creating significant construction, operational and accumulation risks," said Ivan Gonzalez, CEO of Swiss Re corporate solutions. "These interconnected exposures call for solutions that go beyond traditional insurance, combining risk engineering, alternative risk transfer and financing to help businesses invest with greater resilience."
